NOTE 23
EQUITY
| a) | Capital |
As of December 31, 2017 and 2016 the Bank had 188,446,126,794 shares outstanding, all of which are subscribed for and paid in full, amounting to Ch$891,303 million. All shares have the same rights, and have no preferences or restrictions.
The activity with respect to shares during 2017, 2016 and 2015 was as follows:
SHARES As of December 31, | |||||
| 2017 | 2016 | 2015 | |||
| Issued as of January 1 | 188,446,126,794 | 188,446,126,794 | 188,446,126,794 | ||
| Issuance of paid shares | - | - | - | ||
| Issuance of outstanding shares | - | - | - | ||
| Stock options exercised | - | - | - | ||
| Issued as of December 31, | 188,446,126,794 | 188,446,126,794 | 188,446,126,794 | ||
As of December 31, 2017, 2016 and 2015 the Bank does not have any of its own shares in treasury, nor do any of the consolidated companies.
As of December 31, 2017 the shareholder composition was as follows:
| Corporate Name or Shareholder's Name | Shares | ADRs (*) | Total | % of equity holding |
| Santander Chile Holding S.A. | 66,822,519,695 | - | 66,822,519,695 | 35.46 |
| Teatinos Siglo XXI Inversiones Limitada | 59,770,481,573 | - | 59,770,481,573 | 31.72 |
| The Bank New York Mellon | - | 31,238,866,071 | 31,238,866,071 | 16.58 |
| Banks on behalf of third parties | 13,892,691,988 | - | 13,892,691,988 | 7.37 |
| Pension funds (AFP) on behalf of third parties | 6,896,552,755 | - | 6,896,552,755 | 3.66 |
| Stock brokers on behalf of third parties | 3,762,310,365 | - | 3,762,310,365 | 2.00 |
| Other minority holders | 6,062,704,347 | - | 6,062,704,347 | 3.21 |
| Total | 157,207,260,723 | 31,238,866,071 | 188,446,126,794 | 100.00 |
| (*) | American Depository Receipts (ADR) are certificates issued by a U.S. commercial bank to be traded on the U.S. securities markets. |
As of December 31, 2016 the shareholder composition was as follows:
| Corporate Name or Shareholder's Name | Shares | ADRs (*) | Total | % of equity holding |
| Santander Chile Holding S.A. | 66,822,519,695 | - | 66,822,519,695 | 35.46 |
| Teatinos Siglo XXI Inversiones Limitada | 59,770,481,573 | - | 59,770,481,573 | 31.72 |
| The Bank New York Mellon (1) | - | 34,800,933,671 | 34,800,933,671 | 18.47 |
| Banks on behalf of third parties | 12,257,100,312 | - | 12,257,100,312 | 6.50 |
| Pension funds (AFP) on behalf of third parties | 6,990,857,997 | - | 6,990,857,997 | 3.71 |
| Stock brokers on behalf of third parties | 3,071,882,351 | - | 3,071,882,351 | 1.63 |
| Other minority holders | 4,732,351,195 | - | 4,732,351,195 | 2.51 |
| Total | 153,645,193,123 | 34,800,933,671 | 188,446,126,794 | 100.00 |
| (*) | American Depository Receipts (ADR) are certificates issued by a U.S. commercial bank to be traded on the U.S. securities markets. |
As of December 31, 2015 the shareholder composition was as follows:
| Corporate Name or Shareholder's Name | Shares | ADRs (*) | Total | % of equity holding |
| Santander Chile Holding S.A. | 66,822,519,695 | - | 66,822,519,695 | 35.46 |
| Teatinos Siglo XXI Inversiones Limitada | 59,770,481,573 | - | 59,770,481,573 | 31.72 |
| The Bank New York Mellon (1) | - | 32,516,063,671 | 32,516,063,671 | 17.25 |
| Banks on behalf of third parties | 11,878,070,560 | - | 11,878,070,560 | 6.30 |
| Pension funds (AFP) on behalf of third parties | 8,887,560,424 | - | 8,887,560,424 | 4.72 |
| Stock brokers on behalf of third parties | 3,460,285,074 | - | 3,460,285,074 | 1.84 |
| Other minority holders | 5,111,145,797 | - | 5,111,145,797 | 2.71 |
| Total | 155,930,063,123 | 32,516,063,671 | 188,446,126,794 | 100.00 |
(*) American Depository Receipts (ADR) are certificates issued by a U.S. commercial bank to be traded on the U.S. securities markets.
(1) As of August 4, 2015, Banco Santander Chile signed a contract which appoints The Bank of New York Mellon as the commercial bank authorized to trade ADRs, replacing J.P.Morgan Chase Bank NA.
| b) | Reserves |
In April 2017, due to the Shareholders’ Meeting, the Bank agreed to capitalized 30% of retained earnings from 2016 as reserves; which equals Ch$ 141,706 million (Ch$ 112,219 million in 2016).
| c) | Dividends |
The distribution of dividends is detailed in the Consolidated Statement of Changes in Equity.
| d) | As of December 31, 2017, 2016 and 2015 the basic and diluted earnings per share were as follows: |
| As of December 31, | |||||
| 2017 | 2016 | 2015 | |||
| MCh$ | MCh$ | MCh$ | |||
| a) Basic earnings per share | |||||
| Total attributable to the equity holders of the Bank | 562,801 | 476,067 | 448,466 | ||
| Weighted average number of outstanding shares | 188,446,126,794 | 188,446,126,794 | 188,446,126,794 | ||
| Basic earnings per share (in Ch$) | 2,987 | 2,526 | 2,380 | ||
| b) Diluted earnings per share | |||||
| Total attributable to the equity holders of the Bank | 562,801 | 476,067 | 448,466 | ||
| Weighted average number of outstanding shares | 188,446,126,794 | 188,446,126,794 | 188,446,126,794 | ||
| Adjusted number of shares | 188,446,126,794 | 188,446,126,794 | 188,446,126,794 | ||
| Diluted earnings per share (in Ch$) | 2,987 | 2,526 | 2,380 | ||
As of December 31, 2017, 2016 and 2015 the Bank does not own instruments with dilutive effects.
e) Other comprehensive income from available for sale investments and cash flow hedges:
| For the years ended December 31, | ||||||
| 2017 | 2016 | 2015 | ||||
| MCh$ | MCh$ | MCh$ | ||||
| Available for sale investments | ||||||
| As of January 1, | 7,375 | (7,093) | 21,684 | |||
| Gain (losses) on the re-measurement of available for sale investments, before tax | (10,384) | 2,267 | (51,178) | |||
| Recycling from other comprehensive income to income for the year | 4,864 | 12,201 | 22,401 | |||
| Subtotals | (5,520) | 14,468 | (28,777) | |||
| Total | 1,855 | 7,375 | (7,093) | |||
| Cash flow hedges | ||||||
| As of January 1, | 2,288 | 8,626 | 10,725 | |||
| Gains (losses) on the re-measurement of cash flow hedges, before tax | (5,850) | (6,261) | (2,105) | |||
| Recycling adjustments on cash flow hedges, before tax | - | (77) | 6 | |||
| Amounts removed from equity and included in carrying amount of non-financial asset (liability) which acquisition or incurrence was hedged as a highly probable transaction | - | - | - | |||
| Subtotals | (5,850) | (6,338) | (2,099) | |||
| Total | (3,562) | 2,288 | 8,626 | |||
| Other comprehensive income, before taxes | (1,707) | 9,663 | 1,533 | |||
| Income tax related to other comprehensive income components | ||||||
| Income tax relating to available for sale investments | (473) | (1,770) | 1,596 | |||
| Income tax relating to cash flow hedges | 908 | (549) | (1,940) | |||
| Total | 435 | (2,319) | (344) | |||
| Other comprehensive income, net of tax | (1,272) | 7,344 | 1,189 | |||
| Attributable to: | ||||||
| Equity holders of the Bank | (2,312) | 6,640 | 1,288 | |||
| Non-controlling interest | 1,040 | 704 | (99) | |||
The Bank expects that the results included in "Other comprehensive income" will be reclassified to profit or loss when the specific conditions have been met.